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Tiger Global Cuts Its Stakes In Amazon By 67%, JustDial And Apple Also Face Cuts

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Global hedge fund Tiger Global has cut its stakes in online retailer Amazon at the end of first quarter by nearly 67%. According to regulatory filings of the fund, it brought down its stakes in Amazon from 3.19 million shares worth $2.16 billion in December to 1.04 million shares worth $619 million as of March 31, 2016.

Tiger Global had bought 2.44 million shares of Amazon for about $1 billion in September last year. However, the hedge fund lost 22% in the first three months of this year during which Amazon witnessed a dip of 12% in its share values.

But things are a lot different now after Amazon posted stellar financial results of the first quarter, recording $29 billion in revenues. As a result of that earnings call, the stock prices of the company touched an all-time high price of $720.6 on May 12 this month.

Nevertheless, Amazon is not the only company which has witnessed a reduction in stakes by Tiger Global. Two other online retailers Alibaba and JustDial have faced similar cuts.

The hedge fund has completely dissolved its minority stake in Alibaba whereas reduced its stakes in JustDial.com by almost 25% to 44 million shares.  In addition to these online retailers, Tiger Global has also reduced its stake in Apple by almost half to 5.7 million shares, valued at $617 million.

It is noteworthy that Tiger Global is also a lead investor in Amazon’s Indian rival Flipkart which is in a tough spot at present struggling to raise fresh capital to justify its valuation.  The fund had invested in Amazon from its public equity fund and Flipkart from its private equity fund.

Flipkart has already faced a similar markdown of stakes three times from key investors this year including 27% markdown by a fund backed by Morgan Stanley in February; 15% reduction by a T Rowe Price-managed mutual fund in April; and 20% markdown by its mutual fund investors Fidelity and Valic earlier this month.


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